Answer:
DR Cash $589
DR Credit Card expense $31
CR Sales $620
<em>(To record sales via credit card)</em>
<u>Working</u>
Cash
= 620 * ( 1 - 5%)
= $589
Credit Card Expense
= 620 * 5%
= $31
Answer:
Projects E,F and G should NOT be considered.
Optimal Capital is $5,750,000
Explanation:
The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)
Accept if r>k
Reject if r<k
Mayaccept if r = k
If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.
The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital). Considering this projects E,F and G should NOT be considered.
And considering the sizes the Optimal Capital is $5,750,000 (the addition of sizes of all projects)
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CIVIL MEDIA.
Answer and Explanation:
Revenue $160,000
Rental Costs $30,000
Variable Costs $50,000
Depreciation $10,000
Profit before tax $70,000
Tax(35%) $24,500
Net Income $45,500
Operating cash flow
a) Dollars in minus dollars out
Revenue ? rental costs ? variable costs ? taxes = $160000 -$30000-$50000-$24,500 = $55,500
b) Adjusted accounting profits
Operating cash flow = Net income + depreciation = $45,500 + $10,000 = $55,500
c) Add back depreciation tax shield
Operating cash flow = [(Revenue ? rental costs ? variable costs) × (1 ? 0.35)] + (depreciation × 0.35)]
= ($160,000-$30000-$50,000)*0.65 + $10,000*0.35 = $55,500
Yes, the above approaches result in the same value for cash flow
Answer:
The correct answer is 20 Utils
Explanation:
Marginal utility is the change in the utility from an increase in the consumption of a good or service.
Example of Maria
Maria gets 80 utils from consuming 5 cookies
If Maria consumes 6 cookies, The Utils change from 80 to 100. <u>This difference of 20 is called marginal utility.</u> (100-80=20)
